Chief Economic Advisor asks large corporates to clear MSMEs dues

New Delhi, Oct 16 (KNN) Chief Economic Advisor KV Subramanian on Wednesday said that the large corporates should clear the 30-day receivables or dues to the Micro Small and Medium Enterprises (MSMEs).

"Large corporates must play a critical role in clearing cash dues to smaller companies,'' he said at an event organised by industry chamber FICCI being attended by several corporates.

Finance Minister Nirmala Sitharaman on Monday had said that according to returns filed by large corporates to the Corporate Affairs Ministry, as much as Rs 40,000 crore was due to the MSME sector.

The CEA also the slowdown in the economy is due to a decline in investment, which is a key driver and the government hasn't been sitting idle instead it’s on toes regarding the needs of the economy.

He said corporates need to recognise that the present situation and accordingly it's time to make investments.

To combat the economic slowdown, Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates in September, bringing it down to 22 per cent from 30 per cent for existing companies, and to 15 per cent from 25 per cent for new manufacturing companies.

Earlier this month, the Reserve Bank of India (RBI) sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier.